Neyveli Lignite plans to add 8,455 MW capacity in 10 years

Neyveli Lignite plans to add 8,455 MW
capacity in 10 years
Jan 27, 2014
Neyveli Lignite Corporation (NLC) plans to
increase its production capacity to 11,195
MW from the current 2,740 MW over the
next 10 years.
B Surender Mohan, chairman and
managing director, NLC said that over the
next 10 years, NLC’s production capacity
will be increased to 11,195 MW –
consisting of 4,140 MW (lignite based
capacity), 6,980 MW (coal based) and 70
MW in wind and solar. Lignite production
capacity of 30.6 million tonne will be
increased to 38.85 MT.
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According to Mohan, owing to the
increased overhead expenditure, NLC
could not meet the stringent O&M norms
fixed by CERC. He said that NLC’s power
plants are generating power at 26% higher
cost than the O&M cost prescribed by
CERC, i.e. Rs 6.47 lakh a MW more than
the CERC norms, mainly on account of
high employee cost.
“It is imperative NLC’s growth be
commensurate with expenditure. We
should have strict cost control measures
to curtail the avoidable overhead
expenditure to the maximum possible
extent,” he said.
New projects
Both units of TPS-II Expansion – the
2X250 MW and 2X500 MW – shall
commence commercial operation in this
fiscal (Unit-I by February 2014 and Unit-2
in March 2014).
Meanwhile, Unit I and Units II of NLC’s
joint venture project – NTPL – are expected
to be commissioned in February 2014 and
May 2014 respectively. Fuel supply
agreement for this plant has been signed
with Mahanadi Coal Fields of Coal India.
For the 2×500 MW Neyveli New Thermal
Power Plant (NNTPP), Mohan said, the
contract for two packages has already
been awarded and tender finalisation for
the remaining package is in advanced
state. Unit-I is expected to be
commissioned in August 2017 and Unit-2
in February 2018.
As for the 3×660 MW project in Uttar
Pradesh, the tender is in progress for
major packages. But more than 50% of
the land required for the power project
has been acquired.
For the 4,000 MW Sirkali Thermal Power
Project in Tamil Nadu, NLC is awaiting the
Tamil Nadu Government’s in-principle
approval for allocation of land. The coal
for the same will be sourced from the
Jilga-Barpalli Coal Block of Chattisgarh
State.
The 1X250 MW Bithonok Thermal Power
project has regained momentum, said
Mohan, on getting recommendation of
Expert Appraisal Committee (EAC) MoEF
for consideration of environment
clearance. Another 250 MW Barsingar
expansion project with the linked mines is
also in the anvil, with an alternate source
in place of one of the proposed mine at
Palana, which have been dropped due to
land acquisition reasons.
As part of diversification into renewable
energy, earlier NLC announced that it is
planning to set up a 10 MW solar plant at
Neyevli, for which it has called for
tenders. It is now planning to set up
another 10 MW in Barsingsar, Rajasthan.
On fuel linkage to NNTPP, NLC Board has
already approved ‘Resturcturing of Mine I
& Mine IA’ at capital outlay of Rs 1,458
crore, with a project schedule of 26
months from April 30, 2013, to commence
lignite production by mid 2015.